SB 1609: DHS; Early Learning Services Contracts Program; Child Care Providers; Infant and Toddler Child Care Centers; Group Child Care Centers

A BILL FOR AN ACT

RELATING TO CHILD CARE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that in the first quarter of fiscal year 2022-2023, more than fifteen thousand families with children under the age of thirteen received subsidies from the child care connection Hawaii program to help them afford child care services.  The legislature further finds that child care center providers can be faced with disruptions in services and possible closure when their operating costs are funded by tuition fees because their revenues depend upon ever-changing enrollment figures rather than a stable source of funding.

     Accordingly, the purpose of this Act is to require the department of human services to establish and implement an early learning services contracts program to make available a designated number of seats at licensed infant and toddler child care centers and family child care centers for families who are eligible for a federally funded child care subsidy through the department.

     SECTION 2.  (a)  The department of human services shall establish and implement an early learning services contracts program no later than July 1, 2026.

     (b)  The department of human services shall contract directly with licensed infant and toddler child care centers and, through an intermediary, with family child care centers that serve:

     (1)  Children six weeks to five years of age; and

     (2)  Families who are eligible for a federally funded child care subsidy through the department;

provided that a child care center shall not be eligible for a contract if the center is part of, owned by, or operated by a private educational institution and the awarding of the contract would violate article X, section 1, of the Hawaii State Constitution.

     (c)  The program shall meet the following requirements:

     (1)  The program may provide contracts for at least one full classroom at one licensed infant and toddler child care center and one licensed group child care center per county; and

     (2)  Contracts with providers shall be a minimum of twelve months and may be extended.

     (d)  The department of human services shall monitor seat utilization and may adjust the number of contracted seats based on enrollment trends and provider performance; provided that:

     (1)  Providers with consistently low utilization of contracted seats may be subject to contract modification or termination; and

     (2)  The department may contract with a service provider in accordance with chapter 103F, Hawaii Revised Statutes, to operate the program.

     (e)  The program shall cease to exist on June 30, 2028.

     SECTION 3.  The department of human services shall submit annual reports on the development and implementation of the early learning services contracts program, including impacts on child care provider stability and family satisfaction, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, and 2028.

     SECTION 4.  This Act shall take effect on December 31, 2050.

Report Title:

DHS; Early Learning Services Contracts Program; Child Care Providers; Infant and Toddler Child Care Centers; Group Child Care Centers

Description:

Requires the Department of Human Services to establish and implement an Early Learning Services Contracts Program to make available a designated number of seats at licensed infant and toddler child care centers and group child care centers that meet certain criteria.  Requires the Department of Human Services to submit reports to the Legislature.  Sunsets the pilot program on 6/30/2028.  Effective 12/31/2050.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO CHILD CARE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that in the first quarter of fiscal year 2022-2023, more than fifteen thousand families with children under the age of thirteen received subsidies from the child care connection Hawaii program to help them afford child care services.  The legislature further finds that child care center providers can be faced with disruptions in services and possible closure when their operating costs are funded by tuition fees because their revenues depend upon ever-changing enrollment figures rather than a stable source of funding.

     Accordingly, the purpose of this Act is to require the department of human services to establish and implement an early learning services contracts program to make available a designated number of seats at licensed infant and toddler child care centers and family child care centers for families referred by the department at a negotiated rate and schedule.

     SECTION 2.  (a)  The department of human services shall establish and implement an early learning services contract program no later than July 1, 2026.

     (b)  The department of human services shall contract directly with licensed infant and toddler child care centers and, through an intermediary, with family child care centers that serve:

     (1)  Children six weeks to five years of age; and

     (2)  Families who are eligible for a federally funded child care subsidy through the department;

provided that a child care center shall not be eligible for a contract if the center is part of, owned by, or operated by a private educational institution and the awarding of the contract would violate article X, section 1, of the Hawaii State Constitution.

     (c)  The program shall meet the following requirements:

     (1)  The program shall provide contracts for at least one licensed or regulated child care program per county; and

     (2)  Contracts with providers shall be a minimum of twelve months and may be extended.

     (d)  The department of human services shall monitor seat utilization and may adjust the number of contracted seats based on enrollment trends and provider performance; provided that:

     (1)  Providers with consistently low utilization of contracted seats may be subject to contract modification or termination; and

     (2)  The department may contract with a service provider in accordance with chapter 103F, Hawaii Revised Statutes, to operate the program.

     SECTION 3.  The department of human services shall submit annual reports on the development and implementation of the early learning services contracts program, including impacts on child care provider stability and family satisfaction, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, and 2028.

     SECTION 4.  This Act shall take effect on December 31, 2050.

Report Title:

DHS; Early Learning Services Contracts Program; Child Care Providers

Description:

Requires the Department of Human Services to establish and implement an Early Learning Services Contracts Program to make available a designated number of seats at licensed infant and toddler child care centers and family child care centers for families referred by the Department at a negotiated rate and schedule.  Requires the Department of Human Services to submit reports to the Legislature.  Effective 12/31/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to child care.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that in the first quarter of fiscal year 2022-2023, more than fifteen thousand families with children under the age of thirteen received subsidies from the child care connection Hawaii program to help them afford child care services.  The legislature further finds that child care center providers can be faced with disruptions in services and possible closure when their operating costs are funded by tuition fees because their revenues depend upon ever-changing enrollment figures rather than a stable source of funding.

     Accordingly, the purpose of this Act is to require the department of human services to establish and implement an early learning services contracts program to make available a designated number of seats at licensed infant and toddler child care centers and family child care centers for families referred by the department at a negotiated rate and schedule.

     SECTION 2.  (a)  The department of human services shall establish and implement a contracted early learning services program no later than July 1, 2026.

     (b)  The department of human services shall contract directly with licensed infant and toddler child care centers and, through an intermediary, with family child care centers that serve:

     (1)  Children six weeks to five years of age; and

     (2)  Families who are eligible for a federally funded child care subsidy through the department.

     (c)  The program shall meet the following requirements:

     (1)  The program shall provide contracts for at least one licensed or regulated child care program per county; and

     (2)  Contracts with providers shall be a minimum of twelve months and may be extended.

     (d)  The department of human services shall monitor seat utilization and may adjust the number of contracted seats based on enrollment trends and provider performance; provided that:

     (1)  Providers with consistently low utilization of contracted seats may be subject to contract modification or termination; and

     (2)  The department may contract with a service provider in accordance with chapter 103F, Hawaii Revised Statutes, to operate the program.

     SECTION 3.  The department of human services shall submit annual reports on the development and implementation of the early learning contracts program, including impacts on child care provider stability and family satisfaction, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, and 2028.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Early Learning Contracts Program; Department of Human Services; Child Care Providers

Description:

Requires the Department of Human Services to establish and implement an early learning contracts program to make available a designated number of seats at licensed infant and toddler child care centers and family child care centers for families referred by the Department at a negotiated rate and schedule.  Requires the Department of Human Services to submit reports to the Legislature.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1213

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1609

      S.D. 1

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Human Services & Homelessness, to which was referred S.B. No. 1609, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CHILD CARE,"

begs leave to report as follows:

     The purpose of this measure is to require the Department of Human Services to establish and implement an Early Learning Services Contracts Program to make available a designated number of seats at licensed infant and toddler child care centers and family child care centers for families who are eligible for a federally funded child care subsidy through the Department.

     Your Committee received testimony in support of this measure from the Department of Human Services; Early Learning Board; Parents And Children Together; Early Childhood Action Strategy; AAUW of Hawaii; Hawai‘i Children's Action Network Speaks!; and six individuals.  Your Committee received comments on this measure from the Executive Office on Early Learning.

     Your Committee finds that Hawaii faces a severe shortage of affordable child care, particularly for infants and toddlers.  Many families encounter long waitlists and limited choices, while child care providers struggle with financial instability due to fluctuating enrollment and inadequate subsidy reimbursements.  This measure establishes an Early Learning Services Contracts Program through the Department of Human Services, ensuring stable funding for child care providers and helping working families access safe, reliable care for their children.

     Your Committee has amended this measure by:

     (1)  Clarifying that the Early Learning Services Contracts Program is authorized, but is not required, to provide contracts for at least one full classroom at one licensed infant and toddler child care center and one licensed group child care center per county;

     (2)  Sunsetting the Early Learning Services Contracts Program on June 30, 2028; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Human Services & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1609, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1609, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Human Services & Homelessness,

STAND. COM. REP. NO. 789

Honolulu, Hawaii

RE:    S.B. No. 1609

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1609, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CHILD CARE,"

begs leave to report as follows:

     The purpose and intent of this measure is to require the Department of Human Services to establish and implement an Early Learning Services Contracts Program to make available, at a negotiated rate and schedule, a designated number of seats at licensed infant and toddler child care centers and family child care centers for families referred by the Department.  

     Your Committee received written comments in support of this measure from the Department of Human Services, Early Childhood Action Strategy, Hawaii Children's Action Network Speaks!, Parents and Children Together, Hawaii State Coalition Against Domestic Violence, and two individuals.

     Your Committee received written comments on this measure from the Executive Office on Early Learning.

     Your Committee finds that contracting for child care slots, as required by this measure, will help increase the availability of high-quality child care for low-income families and provide a stable and sustainable source of funding for child care providers.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1609, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 595

Honolulu, Hawaii

RE:    S.B. No. 1609

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was referred S.B. No. 1609 entitled:

"A BILL FOR AN ACT RELATING TO CHILD CARE,"

begs leave to report as follows:

     The purpose and intent of this measure is to require the Department of Human Services to establish and implement an Early Learning Services Contracts Program to make available a designated number of seats at licensed infant and toddler child care centers and family child care centers for families referred by the Department at a negotiated rate and schedule.

     Your Committee received testimony in support of this measure from the Department of Human Services, Department of Community Services of the City and County of Honolulu, Early Childhood Action Strategy, AAUW of Hawaii, Hawaiʻi State Coalition Against Domestic Violence, and six individuals.

     Your Committee received comments on this measure from the Executive Office on Early Learning.

     Your Committee finds that in the first quarter of fiscal year 2022-2023, more than fifteen thousand families with children under the age of thirteen received subsidies from the Child Care Connection Hawaii Program to help them afford child care services.  Your Committee further finds that child care center providers can face disruptions in services and possible closure when their operating costs are funded by tuition fees because their revenues depend on ever-changing enrollment figures rather than a stable source of funding.  This measure ensures a more reliable funding stream for child care providers while improving access to child care for working families across the State.

     Your Committee has amended this measure by:

     (1)  Inserting language to provide that the Department of Human Services shall not contract with a child care center under the Early Learning Services Contract Program if the center is part of, owned by, or operated by a private educational institution and the awarding of the contract would violate article X, section 1, of the Hawaii State Constitution;

     (2)  Inserting an effective date of December 31, 2050, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1609, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1609, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,